Index
Introduction 6 Preface 6 Starting point 8 Before take off 10 Innovation and social needs? 14 The story of Social Innovation 16 On route to your destination18 The Map of SI 20 Sectors 22 The Landscape 28 Corporate Social Responsibility 30 Corporate Social Innovation 34 Public Innovation 35 Socially Responsible Investing 37 Social Purpose Ventures 38 Is it the why or the what that maters 40 Non-Governmental Organizations 42 Social Entrepreneurship 44 Social Intrapreneurship 47 Before moving on 48 Famous Travellers 50 Table of do’ers 52 Muhammad Yunus 56 Dave Eggers 58 Marie So and Carol Chyau 62 Jimmy Donal "Jimbo" Wales 64 Natalie Killassy 66 Movement 68 Shedding light on social innovation 70 SI in action 72 Social Innovation in Action 72 Starting with me 74 Mapping out me 76 Understanding the cultural context 78 The Need 82 The need and the dream 84 Target Group 86 Team and Resources 88 The Project 90 The Story 94 Bon voyage 96 Glossary 98 Sources 102

Introduction
Preface
This book was conceived on a trip made by 34 students from the KaosPilots International in the spring of 2008. These 34 students, representing seven nationalities, travelled to the other side of the world with the purpose to explore the meaning of the term “social innovation”. After three months, these same students returned home to document their learnings in this book. Though Shanghai was our port social innovation was what we aspired towards, digging it out of the concrete and steel of the hectic city. Only after returning home with the creation of this book did we find it. We found it through the sharing of knowledge that took place while we were working on the book and through the overview provided through the process of translating our findings into words. This is why the book you are about to read is in the format of a travel guide. It is our hope that it will make the journey into the abstract realm of social innovation easier for the travellers that follow in our footsteps, and that it will guide the traveller past dead ends of inaction in the labyrinthine jungle of theory where so many are lost, and into action; the place where we have come to believe social innovation reveals its true value. Our travels showed us that to embark on social innovation you need to embrace disorientation at first. Everywhere you look you find opposing views on what the term means and what it encompasses. To us this confusion sparked both a need and an ambition: to bring social innovation out of the clouds and down to earth. It has not been our purpose to show the frustrations we went through on our path – though there were many – but through our findings to make it easier for coming travellers to navigate. Most importantly, we felt a need to make the concept tangible to a reader in order to create a foundation for action. We are giving you as a reader the knowledge we would have liked to have had when we set off on our journey; how to be able to take action with a social purpose and spark innovations on your way. We have attempted to cut the path through the jungle bed. It is our hope that you will be inspired to walk it. Please forgive us any bushy parts you come across. As with any jungle, the shroud and vegetation grows back in new ways on a daily basis and our method of cutting the bush might leave areas unexplored. Some of you may enjoy reading this book without wishing to embark on the journey like someone who enjoys browsing the pages of a travel catalogue. You are welcome readers. However, our intent

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was to write this as a guide to those of you who have a desire to go for a swing in the vines yourselves. Change is the only constant in the world and we hope that this book can help to unleash your potential and to guide this change in a positive direction. Finally, as you start to read, please keep in mind that the 34 travellers who set off on this journey have also shared the task of writing about their experiences. Sometimes when some saw a lion others were sure they saw a kangaroo. Evidence of this phenomenon will be present as you scroll through the pages of this book. Please, we encourage you not to despair in the face of this diversity. At least, we have come to rest in the fact that our confusion around social innovation seems simply to reflect that of the world.

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INTRODUCTION

Starting Point
You are about to read about a realm that you may or may not already know about and as with any travel guide you can go through it in the way that best fits your preferences. You can start at the end and backtrack, look up sections that relate to your personal interests or read it cover to cover. These compiled contents should give you somewhat of an overview. But within the book you will also find references to experts working more in-depth with the term. This is a starting point to dig further or to step directly into action. Our hope is that you do both.

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Before take off
Are You Curious about Social Innovation?
This section of the travel guide will get you ready to explore.

BEFORE TAKE OFF

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Below we have outlined the components of social innovation to answer these questions. This is the foundation on which the book is built. As illustrated on the following page there are many views on the words within as well as the concept of social innovation. In this book we will not highlight a specific definition as more relevant or better than others. The bright minds that have created definitions before us have done a good job and we have found inspiration in all of them. We encourage you to do the same. What we found lacking, however, was a way to bridge them. In our perception, for it to best serve its purpose – to improve the conditions for life – one must seek to create it at every turn of the road. It is our goal to make you feel that this is not such an amazing task but something we can all contribute to, first and foremost by trying.

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Social is relating to human society and its members. (www.wordreference.com People using new knowledge to experiment with new possibilities in order to implement new concepts that create new value. (www.businessweek.com) Of or relating to society or its organisation. (Oxford American dictionary)

The act of starting something for the first time; introducing something new. (www.thinksmart.typepad.com)

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Innovation

Social Innovation

New ideas that work to meet pressing unmet needs and improve people´s lives. (The Young Foundation)

New ideas that resolve existing challenges for the benefit of people and planet. (Center for social innovation) New strategies, concepts, ideas in organisaions that meet social needs. It can be used to refer to social processes of innovation, alternatively to desribe innovations which have a social purpose. (wikipedia)

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Innovation and Social Needs?
Looking at society as a whole, solving a need sometimes involves shifting limited resources from one area to another. This is often an unsustainable short-term solution satisfying pressing needs but as new needs arise old ones are likely to remain; hence, we need to take hold of the root of the problems causing these needs. Einstein once said, “No problem can be solved from the same level of consciousness that created it”1. This involves embodying the knowledge that has evolved in society and applying it in the creation of new solutions – of social innovations. Innovations targeted to meet social needs aim to “permanently alter the perceptions, behaviours and structures that previously gave rise to these challenges”2. Simply put, social innovations aim to obtain the triple bottom line (measured on the satisfaction of both people, planet and profit) and be “an idea that works for the public good”3. The more new concepts, thoughts, and actions that take place on a local and global level, the more innovations will occur and spark possibilities for socially innovative solutions.

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Planet

Profit

People

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BEFORE TAKE OFF

The Story of Social Innovation
Though social innovation has occured throughout the history of mankind, there has not been enough interest to trigger the mapping out of the occurrence of social innovation or how the phrase has evolved in modern times. Our offset was that though social innovations are not new to the world, an increased amount of people, institutions, and companies around the world are starting to look for ways to become more sustainable towards the environment and/ or their stakeholders. Without knowing it, these initiatives that arise under titles like social entrepreneurship, user-driven innovation or corporate social responsibility are in truth aiming towards creating social innovation. Understanding the concept of SI and actively using the term can give social action and contribution more power. It can help create a larger awareness in society around imbalances and challenges that need to be dealt with and it can work as a trigger for more people to strive for creating positive change. In order to further understand what SI can be see the outline of past innovations on the next page. They are listed according to: *Innovation *Time of origin *Initial place of origin In order for it to be socially innovative rather than merely innovative it needs to answer a need or create new value in society so we encourage you to think about the need, if any, these innovations respond to. Which of these things do you take for granted in your everyday life?

On Route to Your Destination
Now that you have packed your bags we would like to forward some of our learning from the land of SI to you. They are excerpts from our own experiences and the conclusions we drew from them. It is important to understand the context from which the need emerges before you address it.

Some aspects relating to this

As human beings we stand on a platform composed of opinions and perceived truths. We bring this with us wherever we go. When working with SI in a context outside of our own it can be fruitful to reflect on our own platform and what we bring into the new context – our worldview, assumptions, prejudices, and frames of reference. We cannot impose our worldview onto others. We can, however, indulge in theirs. This boils down to one thing: Engage in dialogue with the experts – the locals – and explore their perspectives. The common mistake made when meeting another perspective than your own is to engage in a discussion to attempt to persuade the counterpart that your viewpoint is more valid. This approach only leaves room for one winner. The object of a dialogue is to increase the understanding on both sides. This way everyone can learn from the outcome and knowledge and understanding can be co-developed and lifted to another level. “People become aware of their culture when they stand at its boundaries; when they encounter other cultures, or when they become aware of other ways of doing things”4 Anthony P. Cohen

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There are different social needs in different places and there are different demands in different places; hence, different innovative actions. Social innovation is context related and it is important to understand the context from which the need emerges before you address it. In doing this, some of the clouds we encourage you to grab are...

The Map of SI

Take a close look at the map and try to get acquainted with the different areas. In the following chapter we will try to give you as much general insight as possible into the different sectors within our society as well as the landscape of social innovation with all its different areas, branches, and strange hybrids.

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THE MAP OF SI

Sectors
Three sectors dominate most societies. The public sector, the private sector, and the civil sector. Due to changes in society and the arrival of new social needs, a “new sector” or more accurately a number of alternative practices has emerged as a kind of cross sector between the already existing sectors. A common term for this phenomenon is the fourth sector.

The Public Sector
The role and responsibilities of the public sector varies greatly from country to country based on the community it represents and the values of the respective governmental institutions it consists of. Its responsibilities can span areas such as the development and maintenance of infrastructure, providing of education, healthcare and eldercare, and the creation of laws and legislation. The income comes from taxes paid by individuals, the private sector, and often from publicly owned companies.

The Private Sector
The role of the private sector as a whole could be viewed as the responsibility to ensure economic growth in society as well as to provide jobs and the production of goods and commodities. The private sector is based on the freedom to engage in commercial activities and trade and it is influenced by supply and demand in society.

The Civil Sector
Traditionally, the civil sector relies on volunteer work and on donations from the private sector as well as contributions from individual people who believe the cause to be worthwhile. These organizations are known as non-governmental organizations (NGO), non-profit organizations (NPO) or voluntary organizations. Initiatives in the civil sector are based on several different foundations, the most usual being dissatisfaction with the actions of the private or the public sector (Green Peace is an example of this) or simply a shared passion for a specific activity (e.g. a sailing club). Their overall role and responsibility can be seen as that of defending the rights of the civil society. Read more about this in the section “Non-governmental organizations” in “the Landscape” on page 40.

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The Hybrid
No sectors on their own have managed to encompass the complete foundations of a society. With societies around the world undergoing constant change the cross- or fourth sector can be viewed as all the initiatives that arise outside the confounds of the traditional sectors to address needs and issues that are not covered by the three sectors or could be covered in a more effective way. The last 15 years, especially, have seen the emergence of new business areas and of organizations that work across the sectors. Such organizations within the fourth sector are numerous and the sheer quantity of names given to them gives an impression of their scope. They include; high purpose companies; double bottom line businesses; affirmative businesses; values driven enterprises; for-benefit organizations; civic entrepreneurs; social purpose ventures; socially responsible businesses; sustainable businesses, social enterprises, and social entrepreneurialism (see more under “Social Entrepreneurs” in the section “the Landscape” on page 42).

Public sector

The 4th sector Private sector Civil sector

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The Connection to Social Innovation
It is important to know that the defined responsibilities of the three sectors vary from country to country. In the US, for example, the private and the civil sectors have a large influence on social initiatives compared to many European countries where social responsibilities traditionally lie within the public and civil sectors. In China, social initiatives are officially considered a responsibility of the government only and many civil initiatives related to social issues are classified as illegal. On top of the variations in political systems and traditions for governing, the sectors are also blurred as private companies focus more and more on social issues, NGOs start working more towards generating their own profit, and public institutions start co-operating with volunteer work and management models inspired by private companies. Social innovation can happen within or across the sectors. In fact, SI does not seem to care about sectors but about ideas, the use of knowledge, networks, and competences.

Change?
As food for thought we note that China is experimenting with ways of governing that all stem from a one-party system. And that within this system certain provinces are encouraged to try out new ways of governing that break with traditional thinking. In the words of the British foreign policy thinker and author Mark Leonard, the leftist political thinkers in the Chinese communist party believe in “a philosophy of perpetual innovation – developing new kinds of companies and social institutions that marry competition and co-operation”5. What few people outside China care to consider is that examples like this one, of willingness to experiment along with the inherent nature of social innovation, of changing the way we work and think, may make many of our current definitions obsolete.

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THE MAP OF IS

Travelling Together
A way to work with social challenges is to use the competencies of all three sectors: Public (Governments), Private (Businesses) and Civil (NGO/NPO) in order to see perspectives and business models that can solve our current and future social challenges and unmet needs. In Northern America and Europe there is a lot of talk about cross sector collaboration and initiatives. However, many of the socially innovative projects are not based on a strong collaboration and we see a potential for this collaboration and shift in mindset to grow to new heights and become more beneficiary for all parties.

NGO
NGOs have the knowledge of social needs and the voluntary labour force, engaged and committed to act on it but they often lack the money to carry out their ideas and make them sustainable.

Business
Businesses have the money and the experience within commerce to carry out large projects and ideas but they often lack knowledge, motivation, and experience within the social needs of society to act on it.

Governments
Governments have the overview of the needs and challenges of the entire country and they provide stability and a long-term perspective. However, they often lack efficiency, employee ownership, and the ability to make money.

Challenges of Travelling Together
When talking about SI, companies, NGOs, and the public sectors very often move within a grey area where the responsibilities of business and civil society blur. We see new ways of thinking about the relationships and partnerships between the sectors as important. It is not about businesses handing a check to an NGO or the public sector economically supporting business. It is about getting the three parties to sit down together at the table and strategically shape projects, specific products, or wider processes.

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Dong Tan
An example of a cross-sector project is the Chinese eco-village Dong Tan which is placed on Chong Ming Island near Shanghai and planned to be one of the first fully sustainable cities in the world along with two other eco-cities in China. Dong Tan is planned by the Shanghai City Council as part of the Carbon Neutral Urban Development Plan where Dong Tan is meant to be a counterweight to the less sustainable Shanghai and at the same time reveal China as a player in the field of sustainability. The Chinese government decided to hire Arup, a British company that specialises in green urban planning, to provide the necessary knowledge for the creation of Dong Tan. Also William McDonough and Michael Braungart, the authors of the groundbreaking book on sustainability “Cradle to Cradle”6, have been hired to help designing China’s coming eco-cities. Dong Tan is an example of how the public sector in one country uses the knowledge from a company from the private sector in another country to create something new that will benefit society and the environment.

The Landscape
You will come across many terms when you move around in the land of social innovation and without proper guidance these may be difficult to distinguish from one another. You can use the glossary in the back of this book to assist you on your way but the list below further explains some of the most important of these terms and can be used as a work of reference. All the different areas do not have to be explored fully before you start your journey but we believe that you will find the descriptions useful as your desire to dig deeper evolves.

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THE LANDSCAPE

Corporate Social Responsibility
Corporate Social Responsibility, or CSR, is “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”7 – the stakeholders being those who are impacted positively or negatively by their activities. Some background information is necessary in order to understand the term: It is often argued that for some companies the motivation for engaging in CSR stems from marketing concerns and is applied as make-up with little genuine impact on the business. This debate about sincerity or the lack of it comes from the definition and purpose of business. While some argue that “the business of business is business”8, i.e. maximizing profit, others have a broader understanding that includes a concern for the business’ environmental and social footprint. With businesses having grown in importance and influence over the last 200 years, now representing more than half of the world’s biggest financial powers9, they become key drivers for change - positive or negative. Regardless of the critics, “corporate” refers to business where money is a key measure for recognition and growth. Any criticism can be generalized and in order to avoid that we see a need to differentiate between three levels of CSR10.

First level: Corporate philanthropy
Companies give back to communities, charities, and non-governmental organizations and develop internal projects that aim to support people in less privileged positions. Some companies involve their employees in such projects in exchange for their motivation and commitment (corporate volunteerism).

Second level: Risk management / reputation
As a response to pressure from stakeholders, non-governmental campaigners or regulatory bodies companies may see their reputation being affected positively or negatively based on their actions (or people's perceptions of said actions).

Third level: Business case / value creation
This is the first and only proactive approach where business leaders see value in practicing social responsibility as an investment that brings about financial return in the long run despite the short term costs.

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THE LANDSCAPE

UN Global Compact Ten Principles
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights. Principle 2: Businesses should make sure that they are not complicit in human rights abuses.

Labour Standards
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour. Principle 5: Businesses should uphold the effective abolition of child labour. Principle 6: Businesses should uphold the elimination of discrimination in employment and occupation.

Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges. Principle 8: Businesses should undertake initiatives to promote environmental responsibility. Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. The Global Compact was initiated by the United Nations’ Secretary-General Kofi Annan in the year 2000. It is a voluntary network aiming to mainstream 10 universal principals for socially responsible business. Today, it includes over 3000 companies from all around the world and another 1000 civil and labour organizations.

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From Financial Reporting to Sustainability Reporting11
Financial reporting, today a standard requirement for companies to operate and be trusted by governments and shareholders, only became mandatory after the stock exchange crisis of 1929. The internationally recognized standards on accountancy were developed mainly in the 1930s. Nowadays, the pressure from stakeholders is requesting organizations to become more transparent in the way they manage their business and the impact they cause on society and environment, not only their financial statements. Since the early 90s, many organizations have started publishing social and environmental reports, citizenship or sustainability reports, mostly on a voluntary basis. The Global Reporting Initiative (GRI) was created in 1999 and today its guidelines for sustainability reporting are being used by thousands of companies, many of the largest corporations in the world and are fast becoming a “de facto” standard. The Swedish government has also mandated state-owned companies to report in accordance to the GRI’s guidelines. The International Standards Organization (ISO) is now developing its own standards for social accountability and both GRI and ISO are aligning themselves with other initiatives such as UN Millennium Development Goals and UN Global Compact.

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Corporate Social Innovation
Corporate social innovation, or CSI, happens when social solutions are the core of the business. This standard covers companies that either remade or created a company based on a social need. These companies are the vanguard of the new business logic; they view community needs as opportunities to develop ideas and demonstrate business technologies, to find and serve new markets, and to solve long-standing social problems. They focus their efforts on inventing sophisticated solutions in close collaboration with their stakeholders. Handling social sector problems often forces companies to stretch their capabilities to produce innovations that have business as well as community payoffs. When companies approach social needs in this way they have a stake in the problems and they treat the effort the way they would treat any other project central to the company's operations. They use their best people and their core skills. This is not charity; it is a strategic business investment.12

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Public Innovation
Public innovation, or public sector innovation, concerns ways of improving performance and outcome through innovations within the public sector, e.g. in healthcare, social welfare or criminal justice. An initiative that exemplifies public innovation with a social angle can be taken from the Belgian Federal Police who hired blind people to get more out of their wiretap recordings in criminal investigations. The UK business school for government National School of Government, together with the Young Foundation and NESTA also set up a Public Innovation Conference. “The aim was to generate an awareness of public service innovations and to discuss the role of government in diffusing innovative practice.”13 The same trio has also drawn up a case study report on the subject “Creating the Conditions for Public Innovation” in the year 2007.

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€ 25% m $ $
Hip-Hop and the Danish Ministry of Taxation
“What is the most important essentials / conclusions of our conversation? The creative process is long...innovation takes time (contrary to the romantic vision of “the lightning bolt strikes and innovation happens”). The creative process is based on the multitude of micro-innovations that occur in everyday life. From the micro-innovations, a new culture grows. The producers or creative catalysts are needed to collect or catch the innovations and bring them into the world. The innovative process requires time/patience, an open environment where ideas can be safely expressed, and enough resources to allow the innovative process to grow. Strong leadership and recognition are basic requirements for fertilizing the ground for innovation. Keepin’ it real – we deal with real people acting in the real world.”14 The text above is taken from a debate on the question “What can we learn from hip-hop – keeping it real” among Danish officials from the Ministry of Taxation at a workshop on public sector innovation in 2007.

Socially Responsible Investing
Some say that the history of Socially Responsible Investing, or SRI, goes back to the Quakers (Religious Society of Friends in the US). In 1758, the Quaker Philadelphia Yearly Meeting prohibited members from participating in the slave trade of buying or selling humans. One of the most articulate early adopters of SRI was John Wesley (1703-1791), one of the founders of Methodism. Wesley's sermon "The Use of Money" outlined his basic tenets of social investing - i.e. not to harm your neighbour through your business practices and to avoid industries like tanning and chemical production which can harm the health of workers. The present view on SRI kicked off during the Vietnam War with a picture of a girl running towards the photographer with her back burning from the napalm that was dropped on her village. This led to wide demonstrations against companies profiting from the Vietnam War, and people began to be more aware of how companies invested and made money. As an example, pension funds are becoming increasingly aware of the target of their investments after the exposures of several pension funds investing in the arms trade. Another trend is found in people who are investing their money in win-win-win projects such as environmentally friendly bonds, stocks in windmills, CO2 quotas or micro-financing.

Domini - Social Investments
“The way you invest matters. Be part of the solution”15 It is stated on the website of the Domini Funds that as a shareholder, “you make a difference in the world, engaging companies on global warming, sweatshop labour, and product safety, revitalizing distressed communities, bringing new voices to the table and helping redefining corporate America’s bottom line”. They outline their investment strategy as determined by stakeholders such as communities, customers, ecosystems, employees, investors, and suppliers. Domini Social Investments won the “Social Capitalist” Award from Fastcompany Magazine and Monitor Group in 2008.

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Social Purpose Ventures
If we take a deeper look into the vast ocean of social innovation we will find one of the more rare species called Social Purpose Ventures (SPVs). "The world today is awash with spectacularly talented, hopeful, and creative social entrepreneurs who offer important solutions to our social and environmental challenges. But there's a shortage of capital and support to nourish entrepreneurs' visions through the early stages. GSVC offers access to such capital, along with solid and grounded advice and a network that reminds entrepreneurs they are not alone in their pathological optimism."16 Global Social Venture Competition In more tangible words: Social refers to meeting the needs of people, profit or planet through what you do. Purpose is why you do it. Venture means involving considerable risk. The risk is of course connected to the capital involved. In most SPVs the capital comes from philanthropists. People who give money without any expectations of getting them back. An increased number of venture capitalists (VCs) seem to find interest within this field. VCs invest in companies in which they see a high potential for growth. They are a group of wealthy investors, investment banks or other financial institutions that pool their funds together. In return for the investment the VCs usually demand a say in the company decisions as well as a portion of the turnover. To bottomline it: SPVs invest in social enterprises/entrepreneurs to get their say as well and a part of the turnover.

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Profit

Social impact

Is it the why or the
Reflections by Daniel Seifter, The KaosPilots International, Team 13 In the second issue of 2008 of the newsletter CHANGE distributed by myC4 (a platform for supporting social enterprise in Africa), a headline read: “Sometimes, it falls upon a generation to be great”17. Apart from the feeling of being overwhelmed with responsibility, the headline inspires to look more deeply into how social innovation can create new opportunities to solve world problems. How do we as representatives of this generation meet the yet unmet social needs? “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”18 These words by Buckminster Fuller open up to the phenomena of social innovation by inviting new initiatives to create social change. Fuller, who among other occupations was a visionary author and inventor, was throughout his life concerned with the question “Does humanity have a chance to survive lastingly and successfully on planet Earth, and if so, how?”19 Companies and entrepreneurs today have a more central role in people’s individual lives as well as the society they operate within and a question has arisen as to whether they have a responsibility in regard to sustainability and social needs because of their strong position in the world. Looking at the market and society as a whole, this definitely seems to be the situation. The market is putting higher demands on products (environmentally-friendly, sustainable solutions, fair trade etc.) and companies in turn are required to take more responsibility on a social level (both in regard to its employees, supply chain, and society overall). Professor Bradley Googins at the Boston College, Centre of Corporate Citizenship describes what he calls: “The 5 stages of Corporate Citizenship”20 as: 1. Compliant (Do what is expected due to laws and regulations). 2. Engaged (Working with a CSR profile to contribute). 3. Innovative (Finding new solutions within their structure to create a greater effect on social needs). 4. Integrative (Integrating social innovations in the corporate system). 5. Transformative (Changing the Game. Make it a natural way of running a business).

what that matters?
By creating a CSR profile a company displays that it takes some sort of social responsibility whether connected to environmental sustainability or more direct social needs. It brings credibilit y and strengthens the brand in the eyes of the market which is beneficial to the customer, the company, and society. A survey made by the consultancy firm McKinsey in 2007 revealed that 95% of CEOs said that society now has higher expectations of business taking on public responsibilities than it did five years ago21. Therefore, it is no surprise that social and environmental issues are becoming business drivers. come part of a company's competitive advantage. Could these strategic plans be an example of such innovative capitalism? Is it socially innovative although the priority is profit and not social needs? Whether the initiative comes from the heart (social innovation in this text) or from the head (innovative capitalism according to the above) does it matter in the end? When a company improves its social responsibility as a part of a strategic plan to increase their turnover, it still improves society. A company which produces more sustainable and environmentally friendly products due to market demands might boost its profit and be seen as a more responsible company, yet it also contributes to a healthier world. Whichever motivation the initiatives stem from I feel inspired by the words of his holiness the Dalai Lama. “Rather give with an un-clean heart, than not give at all”.

Innovative Capitalism?
At first glance the term innovative capitalism seems only to awake associations to new ways of making more money but what if the new ways of increasing profit, that stem from a demand in the market, result in increased social responsibility? The Committee Encouraging Corporate Philanthropy (a New York based business association) reports that the share of corporate “giving” with a strategic motivation jumped from 38% in 2004 to 48% in 2006. Also, in 2006, The Harvard Business Review published a paper on how, if approached in a strategic way, CSR could be-

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Non-Governmental Organizations
In a definition from 1945 Non-Governmental Organizations (or NGOs) are defined as organizations that are not controlled by governments; organizations that exist to defend the rights of the civil society but are independent from the state. NGOs also differentiate from private companies as they do not pursue a profit. There are many forms of NGOs and many alternative terms to cover it. Independent sector, volunteer sector, civil society, grassroots organizations, transnational social movement organizations, private voluntary organizations, self-help organizations, and non-state actors. In World Bank typology NGOs are categorized as either operational or advocacy NGOs. The primary purpose of an operational NGO is the design and implementation of development-related projects whereas advocacy NGOs defend or promote a specific cause. Many international NGOs have a consultative status with United Nations agencies relevant to their area of work. As an example, the Third World Network has a consultative status with the UN Conference on Trade and Development. Large NGOs may have annual budgets in the hundreds of millions or billions of dollars. Funding such large budgets demands significant fundraising efforts on the part of most NGOs. Major sources of NGO funding include membership dues, the sale of goods and services, grants from international institutions or national governments, and private donations. Several EU-grants provide funds accessible to NGOs. Some organizations resembling NGOs are starting to put more emphasis on generating their own profit fuelled by a need to free themselves from the dependency of donations. Many social enterprises surfacing in China are examples of this due to the tight restrictions towards donations that exist in China.

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Springboard Innovation22
Springboard Innovation emphasizes the aspect of profit by calling themselves a “social profit” organization. Springboard Innovation is passionately enabling youth and adults to solve local challenges with sustainable, innovative solutions. They believe that the key to increased capacity is education and engagement with the community and their educational material and training programs are customized to fit any learner or context. One example is a program called Local Agenda that helps people create positive and sustainable change — in their own communities. Their approach is to share knowledge on problem identification, problem solving, leadership, and planning with community members who are passionate about changing the future but lack the skills Springboard can provide. The organization looks at innovation as a process that can be learned and put into practice to create lasting change, and Local Agenda is just one great example of that. They have a very humble approach towards learning and believe that with a little education on innovation you can, as a community member, create the sustainable change YOU want!

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Social Entrepreneurship
A social entrepreneur works to address social needs and problems in innovative ways by viewing challenges in society as a platform for idea generation. She differentiates herself from a conventional entrepreneur by focusing on the financial aspects as a means to an end rather than an end in itself. She measures the success of her endeavour on it’s positive impact on society as a whole. It is a

Baisikeli*

Bikes for a Better Future – the Work of a Social Entrepreneur. The idea of Baisikeli is to ship used bicycles to Africa where they are repaired or rebuilt and sold and where the profit forms the foundation for the creation of a sustainable bicycle industry in Africa. - A commodity that has no value in one place may have great value in another - The idea comes from a need for quality bicycles in Tanzania where most bicycles are of mediocre standard and are sold at an extremely high price. While there is a high demand for used bicycles in Africa – 400,000 bikes are scraped annually in Denmark. Many of these can be used in Africa. We strive to make bicycles accessible in the poorest areas of the world where the bicycle can be a means out of poverty. We have designed bicycles that meet the needs of the poorest so that we can: Increase the income of farmers by more than 100% Create healthcare accessibility Increase the attendance to primary schools All of the above are considered key factors in reducing extreme poverty and meeting the Millennium Development Goals. “My definition of social innovation is to activate unexploited resources. To take something that has no value at one place, activate it, and thereby impart value into it.” Henrik Smedegaard Mortensen, founder of Baisikeli www.baisikeli.dk

*Baisikeli means Bicycle in Swahili

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common misunderstanding that profit is unimportant for a social entrepreneur but in fact the ability to self-sustain by generating profit often determines the viability of the ideas or projects of social entrepreneurs. By breaking with established structures, logic or convictions, they pave the way for new practices and social innovations that benefit both the economy as well as people (See page 21).23

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The Specialists
In 2008, a Danish IT company called “The Specialists”26 received the international IT award for “most unusual entrepreneurship” and it is a good example of an initiative with a triple bottom line (people, planet, and profit). The Specialists are known for primarily employing people with autistic behaviour to work with quality checking software thus acknowledging that they are some of the best in the field. In a simple and beautiful way, the Specialists tell the good story of how IT businesses can be a constructive engine to change the world and improve people’s lives. Not only do the people employed as a result of this initiative benefit but so does the computer industry itself through the employees’ highly developed skills within repetitive quality control. Usually the IT award goes to millionaires who have been in the industry for a long time but for the first time, thanks to the Specialists, a social company has received this award. This is something that creates an echo among autistic people, relatives, and therapists in the entire world as a new world in which autistic people are actually the best within their field is opening up in front of them. Among young people with autism this initiative gives new hope of entering the job market.

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Social Intrapreneurship
Social intrapreneurs, also known as corporate changemakers, represent many of the same values as social entrepreneurs but function within corporations and companies. Social intrapreneurship is becoming increasingly common and has the potential of being a driving force within corporations or companies towards more sustainable business. “The greatest agents for sustainable change are unlikely to be [social entrepreneurs], interesting though they are… They are much more likely to be the entirely reasonable people, often working for large companies, who see ways to create better products or reach new markets, and have the resources to do so.”24 The social intrapreneur acts “behind the scenes” of large corporations, developing tools and methods that push businesses in a socially responsible direction. Provided with economic and administrative support from the company itself, he/she is allowed to focus on the entrepreneurial idea alone. Often the challenges of social intrapreneurs lie within the organizations, e.g. through internal resistance to change.25 In an interview, Win Sakdinan of Proctor & Gamble compared corporations to “elephants, as they take time to change directions, but when they do, they bring lots of weight or positive leverage.” Social intrapreneurs may represent strong drivers of positive change. They function from within already financially strong entities with a wide reach and can benefit from the knowledge and skills already present within the organization.

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Before Moving On
Different readers may find themselves connecting only to some of the areas above. However, understanding the landscape will hopefully present a glimpse into the endless possibilities you are faced with when looking for ways to engage in the creation of socially innovative solutions. Where common sense normally refers to logical thinking you could also see it as the sense made up of a collective mind. The gathering of different competencies, mindsets, and knowledge. Important change does not have to be difficult and it can often come simply by creating the arena for such common sense to be played out. A socially innovative initiative can also consist of setting up a connection between two parties that can benefit from one another but who were unaware of each other’s existence. Creating such a connection can be as easy as a few conversations or phone calls and setting up the right connection can mean a difference to a lot of people. For those of you who wish to make the trip, don’t hesitate to bring people together.

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Famous Travellers
Famous Travellers
What does it take to do good while doing well? We would like to highlight some of the successful doers that have already travelled the path to social innovation. Read about where they came from, what they brought with them, and what they strived towards in their endeavours. Innovations like theirs have gone beyond their creators and revolutionized the world we live in. They stand as a testament to the power of open eyes, minds, and hearts, and the willingness to defy the risk of failure. In all of the examples shown, the people behind went forward because of a belief in the need for their idea. They inspired others to join them in their efforts (individuals, organizations, and networks) and by combining skills they reached the peaks of their ambition.27 Other people travelling the world of social innovation are the experts, the researchers, the students, educators, and explorers who tell the story of this age-old phenomenon. They are change-makers that shed light on creating social change through passion, dedication, and alternative channels in our societies. Let yourself be inspired. What would it take for you to become a social innovator? If you already feel like getting started, sneak a peak at the template “starting with me” on page 72.

Do what you love Love what you do

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Table of do’ers
Who, where, when? Robert Owen Wales, United Kingdom Early 1800’s Their Innovative Solution He is considered one of the founding fathers of the cooperative movement. He was upset with the living conditions in his community, especially the way that the mill workers were being treated and he was determined to make a change – alleviating www.robert-owen.midwales.com Florence Nightengale Europe Mid 1800’s She was a pioneer of modern nursing through compassion, commitment to patient care, and diligent and thoughtful hospital administration. poverty through socialism. Through a rebellion towards her family and status, she chose to become a nurse which was considered a job for the poor. Her work during the Crimean War made her fight to better the standards of hygiene as many www.florence-nightingale.co.uk Saul David Alinsky Chicago, USA The 1930’s He was a main figure of community organizing. He led new ways to organize the poor and powerless and created a backyard revolution in cities across America. soldiers died from infections. As a slum kid raised in Chicago he decided to make a change in his own backyard, beginning locally. Through creating neighbourhood communities, he realized that the citizens could stand up for themselves and http://en.wikipedia.org/ wiki/Saul_Alinsky gain better living conditions. The Need

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Who, where, when? Wangari Maathai Kenya Since 1970’s

Their Innovative Solution She is an environmental and political activist. She founded the Green Belt Movement which has now planted over 40 million trees across Kenya to prevent soil erosion, especially focusing on

The Need As the daughter of farmers in the highlands of Mount Kenya she became inspired by her surroundings to use her passion for the environment and female empowerment.

www.greenbeltmovement.org Ray Anderson Texas, USA Since 1994

mobilizing women in poverty. He is the founder and chairman of Interface Inc. (floor manufacturer). He is committed to reducing and later eliminating petroleum from the company’s manufacturing processes. The company uses waste products to produce floor tiles. Furthermore, they strive for 0-negative environmental imWhen he read a book by Paul Hawken entitled The Ecology of Commerce which argues that the industrial system is destroying the planet, he was immediately moved to make a drastic change in the way his company impacted the environment.

www.interfaceflor.com

pact in 2020.

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Who, where, when? Cecilia Zanotti Brazil Since 2003

Their Innovative Solution Co-founded an NGO called Projeto Bagagem which is a community based eco-friendly tourism network.

The Need Projecto Bagagem gives tourists an insight into local Brazilian communities and their traditions. The communities gain funds to maintain their culture and raise their living standards.

www.projetobagagem. org Peggy Liu China Since 2007 She founded JUCCCE (Joint US-China Cooperation on Clean Energy). A Non-profit organization aimed at helping China accelerate 30 years of world experience and development into 10 years.

“The world is at war with energy and China is our common battlefield”. China is becoming the world’s largest consumer of fossil fuels. The impact on the environment will be dramatic if China evolves as the western countries have.

www.juccce.com

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Muhammad Yunus

Founder of Grameen Bank and author of “Banker to the Poor: Micro-lending and the Battle Against World Poverty" This is the story of Bangladesh's Muhammad Yunus, Nobel Peace Prize winner and the founder of Grameen Bank. Yunus created a new category of banking by granting millions of small loans to poor people with no collateral thus helping to establish the microcredit movement across the developing world. After studying economics in the United States, Muhammad Yunus went home to Bangladesh to help the rehabilitation after the liberation of the country. A shift occurred at a point when he did not feel that the understanding and knowledge of economics from the university course he was teaching was applicable to Bangladesh, which at the time was rated as the poorest country in the world. Yunus did not feel he was making a difference. "The least I as a human being can do is to help just one single person, every single day"28 Outside the university campus in Jobra, Muhammad Yunus discovered that very small loans could make a disproportionate difference to a poor person. Jobra women who made bamboo furniture had to take out unmanageable loans for buying bamboo to pay their profits to the moneylenders. The first loan Yunus gave out (USD 27.00 from his own pocket) was given to 42 women in the village. The women in turn made a net profit of USD 0.02 each on the loan. While traditional banks were not interested in making tiny loans at reasonable interest rates to the poor due to high repayment risks, Yunus believed that given the chance the poor would repay the borrowed money and hence microcredit could be a viable business model. This idea proved to be a good one. Grameen Bank was born and has since its start in 1976 provided 4.7 billion USD to 4.4 million families in Bangladesh. (Equivalent to each family getting $1000. Paying back $10 at an interest rate at 1%) Muhammad Yunus' actions and successes with Grameen Bank have since inspired others to do the same and the economic tool of micro financing has proven to be one of the strongest in the battle against poverty around the World.

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"Credit should be accepted as a human right”29 According to Muhammad Yunus the reason why microfinance is so powerful is the ownership and empowerment created when you see possibilities and show trust to even the poorest of the world. He believes that everyone rich and poor has the same capabilities and should have the same possibilities for creating a living on their own. Muhammad Yunus is a great example of a man that made it far by believing and by following up on his ideas and dreams. He is a do'er and he dares to do.

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Dave Eggers
Founder of 826 Valencia "Many writers, having written a first best-seller, might see it as a nice way to start a career. He started a movement instead."30 TIME Magazine

826
VA L E N C I A

As a founder of the San Francisco-based tutoring centre 826 Valencia, Dave Eggers has brought together community members to help young people excel in their writing and believe in themselves in a way they never had before. Dave is a writer, editor, publisher and an inspiring social innovator of our time. Here is someone who dropped a pebble in the ocean and created a tidal wave. Dave is a spring chicken (born in 1970) but already has a wealth of experience under his belt. He has written a memoir, multiple novels and pieces of non-fiction as well as founded an independent publishing company and given birth to a brilliant tutoring centre concept (which he describes as a "weird happy accident"…we will explain that later). In 2005 he was named one of Time Magazine's "World's 100 Most Influential People". He has been given $250,000 by the Heinz Foundations and most recently he was the recipient of TEDPrize 2008. But the reason we highlight Dave Eggers in this guide is not because of his long list of titles, awards, and accomplishments. We share his story with you because it is about taking action on a street level and making a beautiful difference in the world by embodying your true passion in life. Back in 2000, Dave was living in New York. He was writing his first book "A Heartbreaking Work of Staggering Genius"31. It was at this time that a social need became very apparent to him. It was not until he moved back to San Francisco and gathered together old friends and new friends that his idea on how to face this need took flight.

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The Challenge
Many students at city schools are not able to keep up with their classes.

The Influences
English is not spoken as a first language in many households, some children have learning disabilities, the schools are understaffed and under-funded, the teachers are overworked and have little time on their hands and no opportunity to spend one-on-one time with their students.

Dave's Inspiration
His mom was a teacher, his sister became a teacher, and he had many friends who were teachers. He heard a lot about the struggles they were dealing with and knew first hand that they were hardworking and inspiring people.

The Thought Paving the Way to the Solution
Teachers can't give the students the attention they need. But writers (like Dave and his friends) work flexible hours and often have little to do during the day. They have the time that the teachers lack.

The Innovative Solution
826 Valencia- A tutoring lab, a pirate supply store (yes, pirate, no spelling errors here, ed.) and a publishing company, all in one - A place where writers, publishers and students can work together under the same roof.

Then and Now
At first 826 Valencia had 12 volunteers. Today the organization calls upon more than 1400 volunteers to tutor at the centre and in classrooms of local schools. In the beginning, the pirate supply store in the front of the building was created simply because the location was zoned for retail, so by law they had to sell something. However, it turned out that the eye patches, peg legs etc. have been selling and the profits now pay the rent for 826 Valencia location. Some of the students involved with what has now become National 826 have had their work published. In addition to the original San Francisco centre, the organization now has chapters in Brooklyn, Ann Arbor, Los Angeles, Seattle, Boston and Chicago.

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Dave is a man of words but he is also a man of action. It is because of this combination that his initiative has been so widely successful. The tutoring project has shed light on many lives but because the story is being told, many other similar projects are springing up as a result of it. With community support a website has now been created for this purpose of sharing stories and inspiring others. Check it out and join the vision!32 "The schools need you. The teachers need you. The students and parents need you. They need your actual person, your physical personhood and your open minds and open ears and boundless compassion sitting next to them, listening and nodding and asking questions for hours at a time. Some of these kids just don't plain know how good they are, how smart and how much they have to say. You can tell them. You can shine that light on them one human interaction at a time. So we hope you'll join us."33 Dave Eggers

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Marie So and Carol Chyau34
Founders of Shokay Marie So and Carol Chyau are two examples of social innovators,who started a company called Shokay, in China. Marie was born in Hong Kong and Carol in Taiwan. They both hold a number of degrees and have worked in both the private and public sectors (UN). The company was born while they attended Harvard University. In the process of studying International Development, Marie and Carol brainstormed on ways to utilize their education and talents to build businesses that could impact poor regions. Both of them having spent most of their lives in Asia the natural choice was China, a country with increasingly severe income disparity where many inland regions suffer from poverty and lack of access to markets. During their winter break, Carol and Marie travelled to Western regions of China to investigate the needs and resources of the people living there and look for ways to help. They found an abundant resource of yaks and a NGO partner China Exploration and Research Society. This is what they did: Shokay is a social enterprise started with one cause; "To identify the right opportunities that could impact impoverished regions in China…" The opportunity presented itself in a thick coat of hair, the fur of the massive Tibetan Yak, which is an outstanding resource for fabrics and yarn that equals the quality of cashmere and mohair. Now, Shokay, the Tibetan word for Yak, sells luxury fibre collected in the inlands by local nomadic herders and processed by a number of hand knitters near Shanghai. The philosophy of Shokay is to acknowledge the producing communities by reinvesting parts of the profit in the local community. As the company grows, the funds that they reinvest grow equally. The funds ensure the development of the communities. By reinvesting in the communities Shokay not only ensures a sustainable living for the herders but also creates a platform that enables the communities to break free from poverty. The second step in the supply chain of Shokay is the knitting of the products which is based on an island close to Shanghai. The female knitters are all local and work in near proximity of their homes. To increase the empowerment of the people in the remote regions of West China, Shokay works to promote wool from the Yak

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as a luxury fabric on the international scene to quality stamp and brand the material, thereby increasing market value and securing the herders an even better price. The more Shokay grows the more the conditions of the financially disadvantaged communities improve.

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Jimmy Donal "Jimbo" Wales
Founder of Wikipedia We have decided to highlight Jimmy Wales as one of the biggest socially innovative Internet entrepreneurs who has made a huge impact in the field of knowledge sharing. Jimmy Wales is the co-founder and brain behind Wikipedia. Wikipedia was created in 2001 and is a free, open-content encyclopedia. It is now the largest encyclopedia in the world. His influence has helped popularize a trend in web development, also called Web 2.0. His aim is to facilitate creativity, collaboration, and sharing among users. Time Magazine named him one of the world's most influential people in 2006 because of his massive global impact. Jimmy Wales was born August 7, 1966 in America. He grew up in Huntsville, Alabama, and he received his early education from a small private school run by his mother and grandmother. Education was one of the key values in his upbringing because of the teacher aspect within the family. In an interview he has formulated it this way: "Education was always a passion in my household…you know, the traditional approach to knowledge and learning and establishing that as a base for a good life"35. Jimmy has always had a great interest in finance and he has a Bachelor's Degree in finance from Auburn University. Furthermore, he has a PhD in a finance program at Alabama University. You may ask yourself, Why is he a social innovator? One of his famous punch lines is: "Imagine a world in which every single person on the planet is given free access to the sum of all human knowledge. That's what we're doing!" The perspective - to share and educate everyone for free - is innovative in itself. The free licensing of Wikipedia content means that it is free to copy, free to modify, free to redistribute, and free to redistribute in modified forms, with attribution links. People from all over the world are using this source because Wikipedia is a platform for information and collaboration between people. It is flexible, adoptable and easy to access - it is technology based social innovation.

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The name “Wikipedia” is a combination of “wiki” and “encyclopedia”. Wiki is a term that describes an online tool for collaborative authoring. Software programmer Ward Cunningham was the first to use this term which he got from Hawaiian wiki-wiki, which means ‘quick-quick’. “Encyclopedia” derives from the Latin word “enkuklopaideia” and it means “all-around education”.

When Wikipedia was created in 2001 all of its technology and software elements had been around since 1995. Its innovation was entirely social - free licensing of content, neutral point of view, and total openness to participants, especially new ones. As a result the core engine of Wikipedia is "a community of thoughtful users, a few hundred volunteers who know each other and work to guarantee the quality and integrity of the work." Wikipedia is a growing organism and will continue to accelerate its growth. It is one of the top 20 websites with 5 billion page views monthly. And through this Jimmy Wales has made himself a legend of our time.

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Natalie Killassy
Founder of Stitch Wise "Our business is our vision at work!"36 Real change occurs when the mechanisms in society are shifted to support a need that is yet unmet. Natalie Killassy of South Africa used the channel of business to make a difference in her local community. Natalie grew up in a mining town. In this African nation, the mining industry has been the main driving force behind the development of the economy. Due to poor working conditions many injuries and deaths occur each year. Inspired by her environment, the reality she witnessed every day, Natalie decided to do some research in the mines in order to learn first hand about the safety conditions of the miners. What she discovered led her to start up the social enterprise Stitch Wise in 1997. This innovative business employs paraplegics injured in the mines to make products that make working in the mines much safer. In making this connection, Stitch Wise is having a win-win-win impact. "What most businesses don't realize is that you just need to make a few changes to be able to employ disabled people, and through that process you can harness a huge pool of skills and opportunities for your business."37 Although her products are innovative, it is Natalie's holistic approach to entrepreneurship that is the real gem of her story. Of her 128 employees, 50% are "differently abled". Stitch Wise holds training and empowerment programs (in the areas of personal development, adult education, health education, and computer skills development) and contributes greatly to the advancement of its nation's economy. Surely, Natalie came across challenges along the way but her process was somewhat simple: She saw a need. She felt her role. She acted.

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My integrity is nonnegotiable, My pride and enthusiasm unsurpassed… Our differences are celebrated, I work at Stich Wise.”

Movement
Movement
The stories we have highlighted are people we have met on our path or been inspired by in our own work. They show how individuals can influence their surroundings by seeing their role in solving the social needs affecting their communities. What is perhaps even more interesting is to see these cases in a broader context. All over the world people are working to combat issues such as climate change, population growth, lack of resources, and violations of human rights. Due to an increase in transnational companies and internet communication our world seems so much smaller these days. For some this is a negative phenomenon, however, there are many possibilities that come as a result of this trend. What is happening is that more and more people are waking up to the fact that as humans on this planet our lives are not isolated. Our actions and inactions affect one another. Whether it is our trade policies or our innovative projects everything is connected. For some it takes a shorter time to come to this understanding than for others. What is exciting is to see when people come together to create something greater than themselves in order to have a positive impact in the world. This is largely happening with the support of valuable connections created in networks and communities of practice. The Berkana Institute38, founded by the author and consultant Margaret Wheatley, is an organization working with fostering these relationships around the world. “They learn how local social innovation can be taken to scale and provide solutions to many of the world’s most intractable issues— such as community health, ecological sustainability and economic self-reliance. The Exchange connects leadership learning centres around the globe in such places as Brazil, Canada, India, Mexico, Pakistan, South Africa, the United States and Zimbabwe”39 Global learning networks like Berkana and Pioneers of Change40 are supporting entrepreneurs around the world, however, there are other channels at work fostering social innovation. Using education as a tool for creating the world we want to live in we can have an incredible impact.

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The way in which educational programs are structured greatly influences which mindsets are present in a society. Recent decades have seen a rise in social entrepreneurial programs, highlighting the need for people to go into the world of business with not only the goal of making a profit but with larger visions including people and the planet. An example of these educational programs is the KaosPilots. This is a school focusing on enabling the students to act in an ever changing world through utilizing learning in real world projects and personal leadership etc. Other programs include the Stanford Graduate School of Business’ Center for Social Innovation41 where they aim to strengthen the capacity of individuals and organizations to develop innovative solutions to social problems, as well as the Youth Social Enterprise Initiative (YSEI)42; a social venture program based in Thailand for emerging young social entrepreneurs in developing countries. As time passes and the world evolves many new efforts and initiatives confirm the thought that as individuals we can impact the world but we can create so much more when we work together with a common vision.

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Shedding light on social innovation
SIX: Social Innovation Exchange www.socialinnovationexchange.org Young Foundation Center for Social Innovation London, United Kingdom www.youngfoundation.org.uk

The Skoll Foundation www.skollfoundation.org Stanford Center for Social Innovation at Stanford University Graduate School of Business www.gsb.stanford.edu/csi

The Schwab Foundation for Social Entrepreneurship www.schwabfoundation.org

NESTA National Endowment for Science Technology and the Arts www.nesta.org.uk

global:ideas:bank www.globalideasbank.org

Bigger Thinking www.biggerthinking.com

The KaosPilots International www.kaospilots.dk CSR Wire The Corporate Social Responsibility Newswire www.csrwire.com

If you want to take action, check out the SociaI Innovation in Action chapter on page 70.

SI in action
Social Innovation in Action

You are approaching your destination. Your bags are packed and you have prepared yourself for an adventurous journey into the field of social innovation. In reading this first part of the travel guide, you have experienced many perspectives that have probably inspired you to think about what kind of actions you could take to create social innovation in your community. We will now present some tools to be utilized to gain clarity, provide inspiration, and raise questions that will help you in your pursuit of this goal. This will be done in a playful manner. Although the great social innovators have surely overcome incredible challenges, they have also been passionate about their work and have experienced great joy along the way. Pioneering in the field of social innovation is meaningful and therefore quite exciting.

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The structure of this chapter will be formed around a few suggested areas to explore when kicking off a socially innovative project. It is important to emphasize that the tools provided are not to be used in any particular order. It is up to you to follow your motivation and need and work with what you feel for at the given moment. Remember, use them while taking action and not as an excuse to postpone it! In each section, a template will be provided to visualize a certain aspect of your project. Each template will be accompanied with instructions on how it can be used as well as tips to support you in your work. As a general rule these tools and tips are meant as suggestions and can be altered or built upon as needed. The visual tools are printed in a small format in this book. You can scale them up by drawing them yourself on a piece of paper or you can download larger versions for printing from our website: www.socialinnovation.biz “Creativity is allowing yourself to make mistakes – Art is knowing which ones to keep”43 Scott Adams

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Starting With Me
Look at what you do and in which areas you have experience and talent and ask: How can society benefit from my skills? You do not have to reinvent the wheel to create social innovation and applying your skills and knowledge in new ways can be the decisive first step. Use the templates in the order that comes naturally to you. Start with what you have and build on it from there. Don’t force it. Find out what you are passionate about and let it flow naturally. Passion is the strongest driver for action. Popular TV-chef Jamie Oliver is a good example of this; he went from cooking delicious food in restaurants to bringing his business into the school kitchens of Britain, revolutionizing the traditional meal plans and giving children healthier eating habits. Change starts with oneself. It is not the challenges that are too few but the practice of seeing possibilities for oneself. The first template is one for mapping out where you come from and how you can contribute in a new way. "Nothing splendid has ever been achieved except by those who dared believe that something inside them was superior to circumstances."44 Bruce Barton

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SI IN ACTION

Mapping Out Me
Your experiences: Describe some of the things you have done in the past. Focus on some of the accomplishments that you are proud of and write it in the suitcase on the chart. Passion: What do you love doing? Write down what you feel passionate about in the balloon. Skills: What are your competencies? Describe what you are good at in the body. Values: What are your personal values? Values can be non-negotiable ideals you seek out or believe in. Write down your values as the ground you stand on. Direction: Where do you want to go from here? Having reflected on your experiences, passion, skills, and values, write down in what ways you see yourself impacting society inside the compass in the upper right corner.

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SI IN ACTION

Understanding the Cultural Context
To make a sustainable project that covers the intended need it is important to understand the cultural context in which you are shaping it. You have to go beyond assumptions and look for patterns, habits, customs, and norms to see how people act and then attempt to decipher what this means. Whether it is the culture of a foreign country or a familiar neighbourhood it is important to look at it with a curious mind. To understand a culture different to your own you must be aware of which filters you possess. This means that you have to find out which culture you yourself come from and be aware of your own frames of reference. This also means stepping back to see which segment or group in society you belong to in order to both understand your own perspectives as well as to avoid taking for granted things based on your own experiences that do not apply to persons from another background. The better you understand your own cultural background the better you will understand the context in which you want to operate which in turn will make it easier to find viable solutions and cover actual needs. As part of a culture we often take for granted the customs, habits, and rules that are unspoken and this can make them almost invisible to us. It can even be surprising to hear our own culture voiced. When observing a culture different to our own, however, things that are unusual to us stand out clearly. Because of this it may prove easier to understand and question a culture when observing it from a distance. Whether in our own or a foreign culture, however, these unspoken customs, habits or rules often prove to be some of the strongest guides to a deeper understanding. Make this your starting point and work on finding out why you find certain things or behaviours noteworthy.

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SI IN ACTION

Understanding the Cultural Context
We recommend that you fill in two templates45. One for your own cultural background and one for the target culture. This is to gain a deeper understanding of how they influence one another. When you do this you may find links between the “mapping out me” template and the mapping out of your own culture as well as links between “the target group” template and the mapping out of your target culture. Target culture: Write a headline that sums up the culture you are observing in the sign. Distinguishing features: What stands out and why? Note things that have triggered you in a good or a bad way. These are often things that are different from what you know. Ask yourself; “what has made me intrigued, annoyed, surprised or frustrated?”. Write it in the sun and the cloud. Remember to find out why you had these reactions. Taken for granted: What is taken for granted and why? Some people expect there to be food on the table every day while others do not. Try to find out what is taken for granted and why by asking or observing and write it in the airwaves. Community: What creates a sense of community? What links people together? What makes them belong to their culture and how is this acted out? What would people in a certain culture collectively defend if they were put under pressure? Write your findings in the body of the group of people. New insights: In the globe where the group is standing, list your key learning and new insights based on all the observations you have just listed.

“Make the Known Unknown and the Unknown Known”

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The Need
The incentive to embark on social innovation often stems from a motivation to answer an unmet social need. Whether the need is the foundation for a whole project or the social aspect is an add-on to an already existing business is up to you. Either way, putting emphasis on the need may help to optimize your outcome. For inspiration as to where to make a difference you need only look at your own neighbourhood. There is no need to travel around the world looking for places to make social innovations happen. The best place to start is often in your own backyard.

How to spot opportunities for Social Innovation
To help you meet the world with an open mind for spotting potential social innovations, we have designed a pair of glasses that provide you with a filter or guidelines to challenge the way you look at the world. The new perspectives can enable you to see alternative and socially responsible solutions for creating change, starting in your own backyard. Warning: The glasses may turn things upside down causing new insights and wearing them for a longer period of time can potentially result in a shift of mindset! Guidelines for How to Use the Glasses to Gain New Insights - Cut out the glasses from the template in this book. - Depending on individual style and change in fashion, you can also create your own. - Put them on. - Take a stroll in society, starting in your own neighbourhood and use the filters described to the right:

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1. Frustrations What frustrates you in society? Use it as a driving force as the founder of the Live Aid concerts, Bob Geldof did as a response to his frustration with the catastrophe in Ethiopia in 1979. 2. Think globally - act locally What inequalities exist in your own backyard? You are an expert on your own society; use it to create change most effectively. 3. Ask Other people have different perspectives than your own. Ask for their opinions and talk about what needs they see that might inspire you. 4. Imagine We often tend to focus on problem-solving. Shift your lenses and start visualizing the world you want to live in. What does it take to get there?

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The Need and the Dream
Need: What is the need you want to put emphasis on? Explain what it is in the building. Geographical and societal context: In which context do you find the social need you are highlighting? Describe the geographical location and the characteristics of the society where the need exists in the square inside the globe. Dream scenario: What change does the execution of your project create? Describe the dream scenario in the rainbow. Solutions: What are the possible solutions to resolve this need? Write down these in the roof of the building.

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Target Group
Consider who benefits from your initiative and actions. Society overall is a large target group, especially seen in a global perspective so map out the specific beneficiaries of your project. They are the real, immediate aim: the people who can move forward are empowered or successful where they otherwise failed as a result of your work.

The Target Group (external stakeholders)

Target Group: Whose needs are you meeting? Who are you creating value for? The people in the wagon represent the people who will benefit from the project. Map out the target group of your work in the wagon. Supporters: Who will support the project? The characters behind the wagon represent the people who consciously or unknowingly help and support the initiative (volunteers, consumers etc.). Wins: Who are the winners at the end of the day? You are doing something which has a positive impact on society. Map out all the winners/beneficiaries in the trophies along with a description of what they win.

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Team and Resources
When building on an idea together with others it is important to allow new initiatives to emerge. Trusting and empowering people to participate gives them ownership and allows you to access their knowledge and creativity. Also, embracing mistakes as experiments on the way towards good ideas will nurture a culture where innovations and impact can be created. Make sure to actively involve as many people as possible. Even though some people may only work for one hour on your project this will still give them the opportunity to valuably contribute.

Team and Resources Chart (internal stakeholders)
Core Team: Who are the core developers of this project? In the characters at the centre of the template write the names of all the people who are in your team. Skills (of core team): What is your team good at? In the inner circle document all the skills and resources that are present in your group. Roles: Which responsibilities do the different team members have? Use the hats to divide roles between you. Inspiration: What inspires the group? Write various links, articles, people, organizations, etc. from which you get inspired in the light bulb. Partners: Who are your partners? It is important to collaborate with others in order to succeed. In the characters in the two outer rings of the template put down the names of the people or organizations that are your potential partners and prioritize who are closer to you. Examples of partners could be strategic advisors, investors, or knowledge providers. Fill in with which skills or resources they contribute in the rings.

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The Project
The street artist Banksy has once said: “Don’t sit around and wait for the perfect idea! Leave the house before you find something worth staying in for.” For the social innovator taking his or her first step is about getting onto the pitch to play the game and thereby experiment with new ways of making business. Have a talk about your idea with people from other sectors or walks of life than the ones you represent. Get feedback, input, and criticism and get inspired by seeing your project in a different light. Be it from a social angle, a business perspective or something entirely different. Either way, chances are that this will make your initiative more sustainable!

The Project Overview

Project name: Give your project a title Main Ingredients: What are the key elements of your project? Note them in the water pitcher and flour package. Boosters: What can make your project grow and become successful? Write down the features that can support and boost your project on the yeast package. Spices: What can make your project more powerful? List factors and components that can strengthen your project. Topping: What add-ons could augment the success of your project? Write down the potential project add-ons on the "toppings packet". Recipe: What are the steps involved in creating your project? Describe the elements of the project in the recipe drawing on the template.

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The Story
To get people involved and find financial support it is important to be able to communicate your message. To have a good story. If your scope is strong enough people will work for your idea or the ideal you are championing. An option is to create a blog or a website where people can discuss and share their experiences. If done effectively the possibilities are endless. It could turn into a global movement! Find out what is unique about your idea and make it personal. Do your best to make your plan easy to understand. For example saying that you donate 1 dollar pr. meal except during the summer season and on Tuesdays where 77% go to administration is NOT the way. You have to be able to explain your story so it is understood.

The Story Description

Origin of the idea: How did you get the idea? Tell how you got your idea in the thought bubble. Your passion: Why is this project important to you? Write down your personal motivation/the group's motivation within the project in the heart. The story: What is the story about the project? Write the full story from when you got the idea and how you/the team will solve the problem. Make it easily understandable for the listener. One-liner: What is the story of the project bottom-lined? Write a one-sentence teaser you can use to catch people's attention before going into details. Remember to only do the exercises that are meaningful to you and where you see yourself in the future – otherwise it is just text on paper. Use them in your elevator pitch or on your website and revisit them at important milestones to make sure you are still aligned with your vision and well on your way.

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Bon voyage
Bon voyage
“If not me, who? And if not now, when?”46 Mikhail Gorbachev the last Head of State of the USSR Change is happening all around us all the time. The opportunity is there to influence these changes towards creating the world we want to live in. Social innovation as we know it is a starting point. It is up to you to explore and create the new landscape of social innovation and in doing so empower others to create their own desired future. “Sometimes the notion of change, big or small, seems overwhelming and we retreat into inertia or paralysis. What I say to myself at the beginning of each day, to keep things moving toward that nourishment internally and externally, is just to acknowledge my intention and take one action every day. The sense of that, whether it is accomplishment, self-satisfaction or euphoria lends meaning to my life and each day ends with gratitude. I see simple ways like these daily personal intention, action and gratitude - can add to a mountain of positive change in the world, quickly. This is how I would define self-responsibility. Once I start, it’s not just one thing I’m doing, but many.”47 Deborah Goldblatt Founder of the Youth Dialogue Programme, San Francisco

“Citizens, consumers, employees and leaders have an opportunity to influence and contribute to the development of a better world. And this is indeed where it starts - with ourselves. We all have an important role to play - and we can all contribute as social innovators in each our own way. To quote the American anthropologist, Margaret Mead – Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has”47 Tania Ellis, author of De Nye Pionerer on social innovation and entrepreneurship

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“Changes come from actions. Positive social change can happen by chance, but looking at history and the challenges facing the world today, it feels too haphazard to leave it up to sheer luck. Recognizing an opportunity to do something is also an opportunity to act. An act, ever so small, is better than no act. We can do more. Better.”47 Christer Lidzélius, CEO and Principal of the KaosPilots International

Join the conversation! Think big by starting small and stop being a victim of circumstance but rather the agent for change that lies within you. Traveller, we salute you! June 2008 Team 13

Glossary
Glossary
To help avoid misunderstandings you are provided with a glossary to social innovation with some of the words you find in this book as well as a few words you might encounter on your further travels. Some have been inspired by or compiled from other sources but we have tried to use our own words as much as possible.
Buzzword This covers terms and words that are used to an extent where a hype is created around them. Change agent A person who is equipped to and capable of making change. Change management A structured approach to change in individuals, teams, organizations, and societies. Context The circumstances that form the setting for an event, statement or idea in terms of which it can be fully understood and assessed (Oxford American Dictionaries). Copenhagen Consensus Centre A research centre connected to Copenhagen Business School founded by Bjørn Lomborg in 2002. Copenhagen Consensus Centre is conveying research to prioritize the world’s biggest challenges from an economist’s angle using cost benefit analysis as one of their main tools. Corporate citizenship Corporate citizenship is another term for Coporate Social Responsability. Cross Cultural Organization Working inside or with an organization that reaches out and touches upon different and possibly diverse cultures. Corporate Social Responsibility Also known as CSR, corporate social responsibility is a concept where organizations and companies consider the interests of society by taking responsibility for the impact of their activities some or all of the following: Customers, suppliers, employees, communities and other stakeholders or the environment. Corporate philanthropy Corporate philanthropy is a branch of CSR where organizations give back to society, charities, and NGOs. It can also cover initiatives inside an organization that support less privileged people in that organization (See CSR). Corporate Social Innovation Corporate social innovation is when commercial companies integrate innovative solutions to a problem or a need on a society level in their core business, through core competences (Svendsen and Olsen, 2006)

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Cross Sectarian Project Cooperation between two or more sectors; the public, the civil or the private. Culture Generally refers to patterns of human activity and the symbolic structures that give such activities significance and importance (wikipedia). CSI See corporate social innovation. CSR See corporate social responsibility. Enforced Loyalty Companies making sure that they will be the sole provider of services and products to a buyer through contracts. Fourth Sector Business Is the definition of a merger between the public, civil, and private sector that enables them to work as one. Globalization A process that breaks down barriers and unifies the people of the globe. Guanxi The Chinese term for a loyal network. Innovation The generation, acceptance, and implementation of new ideas, processes, products or services (Thompson, 1965).

Innovative Capitalism In this book, this term is used to describe innovations that allow the financial bottom line to stay in focus in a world that has increased its attention towards social responsibility. Millennium Goals, The The Millennium Goals consist of eight goals developed by the UN to deal with the biggest contemporary crises that span the globe. The goals are to be achieved by 2015. NGO See non-governmental organization. Non-Governmental Organization A Non-Governmental Organization is an organization that is run without the influence of governments in terms of organization and most commonly also financially. Non-Profit Organization Non-profit organizations or not for profit organizations work like NGOs but define themselves by not working for a profit. (See Non-governmental organization). NPO See non-profit organization. People, planet, profit See win-win-win.

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Proactive A state of mind where you act before a given situation evolves to a crisis or confrontation. PSI See public innovation. Public Innovative Public innovation or public sector innovation is a term for innovative initiatives within the public sector.

Socially Responsible Investing Socially responsible investing is investments made to ensure both economic growth and improvements of society. SPV See social purpose venture. SRI See socially responsible investing. Stakeholder

SE See social entrepreneurship. SI See social innovation. Social Entrepreneurship A social entrepreneur is an individual who strives to find solutions to the needs of society. His/her success is measured by his/her impact on that need. Social Innovation New ideas that work to meet unmet needs and/or create new possibilities that better the lives of people. (Also READ THIS BOOK!). Social Intrapreneurship An intrapreneur is an entrepreneur working within an existing company to create positive change that serves the needs of society. Social Purpose Venture Social purpose ventures invest in social enterprises to create a turnover.

A person or group directly connected to or influenced by something. Systemic thinking Is viewing problems and issues as part of one whole using this as a basis for action. Viral Marketing A video, image or text that has been spread through word of mouth on the web. Web 2.0 New trends within the web and web-design to promote creativity, information sharing, and user collaboration. Win-win-win Also called people, planet, profit, covers solutions where you, your client, and the community all benefit.

The Map
Change? 5. Page 22, What Does China Think by Mark Leonard, February 2008, pages 34-36, 54 and 68-71, Dongtan 6. Page 24, Cradle to Cradle: Remaking the Way We Make Things, William McDonough and Michael Braungart, 2002

The Landscape
Corporate Social Responsibility 7. Page 28,Commission Green Paper 2001 Promoting a European Framework for Corporate Social Responsibility, COM(2001)366 Final 8. Page 28, Milton Friedman, Nobel Prize winner in Economy, 1976 9. Page 28, Fortune, July 31, 2000 and World Bank, World Development Report 2000 10. Page 28, The three levels of CSR are explained in the special report on Corporate Social Responsibility - Just good business, the Economist, January 17th, 2008 From Financial Reporting to Sustainability Reporting (textbox) 11. Page 30, New Wine, New Bottles: The Rise of Non-Financial Reporting, Allen L. White, June 20th, 2005 Corporate Social Innovation 12. Pge 32, De Nye Pionerer, Tania Ellis, Denmark, 2006 Public Innovation 13. Page 33, The Centre for Public Innovation (www.publicinnovation.org.uk)

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Hip Hop and the Danish Ministry of Taxation 14. Page 34, MindLab workshop on public sector innovation, June 28th to 29th, 2007. MindLab is a section of the Danish Ministry of Taxation that researches within user-driven innovation. It was originally created in 2002 as an incubator for innovation under the Finance Ministry (www.mind-lab.dk) Domini – Social Investments (textbox) 15. Page 35, www.domini.com Social Purpose Ventures 16. Page 36, Global Social Venture Competition (www.socialvc.net) Is it the Why or the What that Matters? (textbox) 17. Page 38, CHANGE newsletter no. 2, produced by myC4 (www.myc4.com) 18. Page 38, Richard Buckminster “Bucky” Fuller, USA (1895-1983) 19. Page 38, Richard Buckminster “Bucky” Fuller, USA (1895-1983) 20. Page 38,From a lecture at the American Chamber of Commerce, Shanghai, March 2008 by Bradley Googins, professor at the Center of Corporate Citizenship, Boston College 21. Page 39, The survey by McKinsey as well as the report by the Committee Encouraging Corporate Philanthropy are quoted in Corporate Social Responsibility - Just good business, the Economist, January 17th, 2008 Springboard Innovation (textbox) 22. Page 41, www.learninginnovation.org Social Entrepreneurship 23. Page 42-43, From the article Bæredygtig Business, Tania Ellis, 2006 Social Intrapreneurship 24. Page 44, From the article Unreasonable People Power, the Economist, January 22nd, 2008 25. Page 44, The Social Intrapreneurs: A Field Guide for Corporate Changemakers, London, UK, April 17th, 2008. Published in partnership with The Skoll Foundation, Allianz and IDEO The Specialists 26. Page 45, The Specialists (Specalisterne) was founded by Thorkil Sonne (www.specialisterne.dk)